Singapore funds reassure president on COVID-19 hit

Singapore's sovereign wealth funds have reassured the country's president that they took steps to cushion the impact of the COVID-19 outbreak.

In a post on her official Facebook page on Sept. 24, President Halimah Yacob said she had completed virtual briefings with Temasek Holdings Pte. Ltd., which had S$306 billion ($214.6 billion) in assets as of March 31, and GIC Pte. Ltd., which has more than $400 billion in assets.

"Since I took office three years ago, I have made it a point to meet GIC and Temasek regularly, and at least twice a year. Both GIC and Temasek invest our reserves, so it is important that I am periodically briefed on their global economic outlook, investment strategies and performance. More so for this year's briefings, given the impact of the ongoing pandemic on their investments," Ms. Yacob said.

She said that while many investors have taken a hit, she was "glad to learn that both GIC and Temasek have taken steps to cushion the impact. More importantly, as everyone adjusts to a new post-COVID-19 world and a reshuffling of the demand and supply chains, it is important that GIC and Temasek continue to position themselves for future opportunities," she said.

In July, Temasek reported a 2.2% drop in the value of its portfolio for the fiscal year ended March 31. Also in July, GIC reported its lowest 20-year inflation-adjusted returns for the period ended March 31, with a 2.7% annualized real return.

Ms. Yacob said the annual briefings are also useful to engage with GIC and Temasek on their market outlook — "a main factor in their projection of expected long-term returns."

Temasek reproduced Ms. Yacob's post on its official Facebook page.

"We are living in volatile and uncertain times, and the pandemic has fundamentally changed our world in so many ways. But with commitment, resilience and by working together, we will come through it," the Temasek post said.

Spokesmen for GIC could not immediately be reached for comment.